By Bob HermanMay 20, 2026
Bob Herman is the author of Health Care Inc., an award-winning weekly newsletter about the business of health and medicine.
Bob covers the money in health care, focusing on health insurance and hospitals. His stories delve into Medicare Advantage, opaque prescription drug benefits, and how much executives actually make. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09.The federal government is sending nearly $8 billion in supplemental Medicaid funds to hospitals in Florida for care they delivered last year, delivering a windfall to facilities in the politically influential state ahead of the imposition of new limits stemming from President Trump’s 2025 tax cut bill.
The extra cash is another victory for hospitals, which now are routinely getting paid much-higher commercial prices to treat Medicaid patients. Florida’s hospitals, which lobbied to get these extra funds approved, could get billions more on top of that once federal Medicaid officials mull over this year’s application.
On April 30, officials with the Centers for Medicare and Medicaid Services approved the money through a mechanism called a state directed payment program. CMS released the approval letters this week. The $8 billion, which also was authorized by state lawmakers, covers Medicaid patients treated from Oct. 1, 2024, through Sept. 30, 2025.
